Rapid City Regional Airport 2023 Annual Report

RAPID CITY REGIONAL AIRPORT

2023 ANNUAL REPORT

“Working Together, we reach new heights while connecting Rapid City to the world.”

In 2023, our standout project involved initiating a groundbreaking terminal renovation, a monumental undertaking with a budget of $220 million. This expansive endeavor is poised to cater to generations of passengers, offering essential amenities and top-notch services to position the airport at the forefront of aviation for years

From the Director Patrick Dame

to come.

Throughout the past year, we achieved a number of milestones, including connecting our sewer system to the city’s main infrastructure, overhauling a wastewater lagoon, introducing a very successful restaurant vendor at the airport that broke profit

Rapid City Regional Airport is vital in fostering economic growth

records, acquiring various pieces of equipment, wrapping up an

and connectivity within the Black Hills region. The airport serves

economic impact study, and many more.

not only the local community but also extends its influence across a sprawling five-state region, making it a key hub for both business

The airport’s success is fueled by the vital contributions of our cus-

and leisure travelers.

tomers, who embrace the skies, and our resilient staff, who tirelessly uphold operations, day or night, rain or snow. Strong partnerships

As a crucial transportation hub, it is a key contributor to the local

have also been forged with entities such as the City of Rapid City,

economy, with a direct impact of over $295 million (plus $456 mil-

Visit Rapid City, SD Visitor Industry Alliance, Elevate Rapid City, and

lion indirect) and support for 2,883 jobs.

State Tourism.

Our Mission Our mission is to provide a safe, environmentally responsible and fiscally self-sustainable operation ensuring high quality services and facilities.

Our Vision Our vision is to provide world class transportation service enhancing economic growth.

Sculpture: Siouxper Boy © Matt Lanz

Airport Board of Directors Rapid City Regional Airport is owned by the City of Rapid City and is governed by a six member Board of Directors appointed by the Mayor and confirmed by the Rapid City Common Council.

Members serve five-year terms and are responsible for the general oversight of the airport authorizing the expenditure of funds and execution of contracts needed to operate the airport.

Dustin Dale President Dr. Robert Hall Vice President Bob Conway Secretary Michelle Thomson Member Darren Haar Member Michael Rath Member

Economic Impact Study Rapid City Regional Airport contributes to the region’s economy by

EMPLOYMENT The airport supports an estimated 2,883 jobs in Pennington County.

creating economic activity, jobs, and income. This economic activity multiplies within the entire regional economy.

TAX REVENUE

This study was conducted by Grand Valley State University.

Rapid City Regional Airport generates $2,219,801 in tax

It estimated economic impact based on commercial visitors, general

revenue for Pennington County.

aviation visitors, operations, capital investments, and tenants.

$456 Million Impact

COMMERCIAL AIRLINE SERVICE Airline passengers utilizing the airport resulted in $153 million in direct spending and $188 million in economic impact.

An intercept survey was used to collect commercial spending data. Airport visitors were asked to complete the survey to access free Wi-Fi. Data gathered includes zip code, length of visits, party size, spending patterns, and general demographics. Data from this survey was used to calculate the economic impact of commercial visitor spending and the catalytic effect of RAP on household incomes.

Rapairport.com/2023-economic-impact-study

9 NON-STOP ROUTES MINNEAPOLIS

CHICAGO DENVER

LAS VEGAS

CHARLOTTE

MESA/PHOENIX

TOTAL PASSENGERS United Airlines 311,270 Del ta Air Lines 150,919 American Airlines 152,300 Allegiant Airlines 80,355 Sun Country Airlines 7,737

DALLAS- FT. WORTH

+4.1%

ENPLANED PASSENGERS

+4.8%

DEPLANED PASSENGERS

LOAD FACTOR 85.7%

-5.1%

30% Growth In enplaned passengers over 10 years

352,388

350,193

+5.3% FLIGHTS OPERATED 4,332

*Comparison 2023 vs. 2022

352,388

2023

2023

338,458

2022

A RECORD

348,269

2021

YEAR

185,592

2020

South Dakota air travel

351,096

2019

310,810

2018

295,215

2017

279,558

2016

270,608

2015

270,100

2014

continues to show resiliency despite an airline crew shortage and restructuring impacting regional markets.

New Airline Sun Country Sun Country Airlines entered the market with flights to Minneapolis (MSP).

Brooke Kaufman - Visit Rapid City Charles Breer - Sun Country Airlines

The inaugural flight arrived on June 19, 2023 and was greeted with a water salute and guest event.

Sun Country Airlines offered twice weekly nonstop flights seating 186 passengers per trip on a Boeing 737-800 jet. For residents of western South Dakota, the route provided a fast, low cost option to the area’s largest destination market.

PEAK CAMPAIGN FLIGHT BOOKINGS 6,484

Marketing

FLIGHT REVENUE $4,421,515

Peak marketing efforts engaged users who had high travel intent for South Dakota.

Re-targeting with SD Tourism partnership, online travel agencies and paid search efforts captured those who were ready to fly and had specific interest in Rapid City Regional Airport.

Follower growth vs. 2022

CAMPAIGN ROI 1,781%

IMPRESSIONS 22,808,143

+56.9%

+119%

Terminal Expansion Project Project 1 - Phase 1

The expansion marks a significant investment for the airport and represents its commitment to improving the travel infrastructure in the region.

Project One, Phase One focuses on the back-of-house luggage screening, improving security, efficiency and worker safety.

The contract for phase one was awarded to Mead & Hunt for design and Scull Construction.

BIL GRANT Rapid City Regional Airport received a $10.9 million share of over $967 million in discretionary grants under the Airport Terminal Program (ATP), which was created by the Infrastructure and Investment and Jobs Act (IIJA), commonly known as the Bipartisan Infrastructure Law (BIL)

OCTOBER 24, 2023

During the groundbreaking event, the public had the opportunity to learn about the multi-phase future of the

PHASE ONE GROUNDBREAKING

project. Key community stakeholders, including board members, city council members, and Mayor, Jason

TERMINAL EXPANSION PROJECT

Salamun, attended the ribbon-cutting ceremony.

Sanitary Sewer Project Funded by a CARES Development Grant, the project linked the Rapid City Water Reclamation Facility with a lift station at the airport, replacing an outdated wastewater lagoon constructed in the 1950s.

Empty Pockets = Full Plates On December 21, 2023, Rapid City Regional Airport’s “Empty Pockets = Full Plates” program donated $1,000 to the Cornerstone Rescue Mission. The program encourages travelers to donate their loose change at the TSA checkpoint to support homeless individuals in Rapid City.

Mamava Lactation Suite

SafeSky - Triennial Exercise

A Mamava lactation suite was unveiled in the terminal to meet the needs of nursing parents. The unit is a self-contained structure that provides a comfortable, handicap-accessible, and private space for breastfeeding.

New Snow Plow Combo Unit The airport purchased a new runway snow plow and broom unit to assist with weather operations for $825,482.

On September 11, 2023, the airport held a full-scale emergency drill including a live burn scenario. With the involvement of over 100 volunteers from the public and various agencies, the exercise enriched the realism of first responder training.

Multi-Purpose Building May 9, 2023 an official ribbon cutting ceremony was held for a new 4,500-square-foot multi-purpose building. It will initially house airport snow removal equipment and later be available for private leasing to help meet the need for airport business development.

New Restaurant Concession Sky Dine Inc. began operations as the new food service concessionaire at the airport. Located pre and post security, the South Dakota company’s options include Cinnabon, Mountain Mudd Espresso as well as a full menu and bar. The new concessionaire surpassed previous revenue records by 106%.

New ARFF Truck A new Airport Rescue and Firefighting truck was purchased. The Oshkosh Stryker is a state-of-the-art vehicle that has been specifically designed to meet the unique challenges of airport firefighting. With its impressive 3,000-gallon water tank, 450lb dry chemical tank, and snozzle, the vehicle is capable of extinguishing even the most challenging aircraft fires quickly.

Hidden Disability Sunflower Rapid City Regional Airport was the first location in the Dakotas to join the Hidden Disabilities Sunflower Program. The program aims to assist those traveling with invisible disabilities across the world.

Governance Review A review of the airport governance model was conducted by Steven Baldwin & Associates. The firm recommended that RAP move to an airport authority.

Enterprise Income The Airport is required by the federal government to be as self-sustaining as possible thereby receiving all of its operating revenues from tenants and users of the Airport.

Functioning like a business, Rapid City general fund tax dollars are not required to support

Rental Land $211,796 Advertising $129,393

Other $979,469

Restaurant & Shop $480,627

Terminal O&M $805,651

Parking Lot $3,007,715

Airport operations.

THE ENTERPRISE FUND is used for operating and maintenance costs of the airport.

Grants $1,280,616 Fuel Sales & Flowage $143,389

DINING & BAR

+106%

Operated by a new vendor Sky Dine Inc. $353,179 PARKING LOT

+20%

Operated by the airport $3,007,715

Landing & Gate Fees $1,771,140

Car Rental Commission $2,498,747

ADVERTISING

+53%

Operated by the airport $129,393

Income: 11,308,552

Expense Operating expenses are necessary to provide

Other $600,002

quality services to our customers. The airport provides full-time employment for over 30 staff

Insurance $135,825

members.

Repairs $364,636

Wages & Benefits $2,615,331

HANGAR FUND Used for hangar expenses and future hangar development Income: $30,027 | Expense: $28,410

Supplies $444,259

QTA FUND Used for the operation of the car wash Income: $622,425| Expense: $587,242

Professional Services $516,702

AIP FUND A restricted fund used only for FAA approved capital projects. AIP funding is matched at 5% from SDDOT & 5% local (PFC or Capital).

Income: $4,214,007 | Expense: $4,311,757

Utilities $489,426 Law Enforcement RCPD $205,552

Airport Rescue Firefighting RCFD $656,936

*Totals are unaudited

Expense: $6,183,901

Interdepartmental Charges $155,232

CFC FUND A restricted fund coming from daily charge on car rentals. This is only used for car rental improvements.

Received: $1,239,967 | Expense $0 PFC FUND A restricted fund coming from airline ticket fees. This is only used for local match on AIP grants.

Received: $1,433,384 | Dispersed: $690,819

Rapid City Regional Airport 4550 Terminal Road, Suite 102 | Rapid City, SD 57703 Airport Information Line: (605) 393-9924

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